An alleged draft of the European Union’s Artificial Intelligence (AI) Act was leaked on Monday.
Companies were already aware of what might be asked of them to comply with European regulations, but the 892-page leaked document, according to Euractiv, shows the timeline is tight and will be costly.
This could be a problem for start-up companies, who may lack funding and the adequate legal representation to negotiate the regulatory framework at speed. Under such circumstances, European regulators could inadvertently push the next OpenAI out of business before it’s even made an impact.
These are the concerns of businesses and commentators within the European AI industry, who fear the knowledge gap between developers and regulators could stifle innovation as fast-paced technological developments outpace regulators’ abilities to legislate.
EU Is The First To Regulate AI
Simon Portman and Mike Williams, intellectual property lawyers at Marks & Clerk, believe there’s little merit in being first out of the regulatory gate if the aim of protecting the public is outweighed by the damage inflicted because they “end up strangling Europe’s AI industry at birth.”
“There has been vocal pushback from industry in the EU, particularly from companies and innovators in France and Germany who fear being eclipsed by the U.S.,” they say.
Indeed, in the U.S. AI firms have been given pretty much a free rein as big tech companies have enjoyed a self-regulatory framework so far, and any plans for future regulation of the industry have yet to be announced.
This light touch has its critics, but it has allowed enormous leaps forward, as illustrated by companies such as Mirosoft Corp (NASDAQ:MSFT) and its AI partner OpenAI, who have both made keystone contributions to the development of chatbots.
Meanwhile, Amazon.com Inc (NASDAQ:AMZN) has opened up vast cloud capabilities on which new generative AI (GenAI) systems will be built, and Nvidia Inc (NASDAQ:NVDA) is developing the semiconductor processing power that will help achieve new AI use cases and innovations.
Also Read: Let Bears Fret About Tech Valuations: How AI Leaders Microsoft, Nvidia And Google Can Push Higher
Hitting A Moving Target
Some might argue, these companies are now moving forward at such a pace that even trying to impose AI…
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